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Legislative Changes Affecting Salary Administration, 89th Legislature

FPP F.021

ERS, TRS and ORP Retirement Rates for Fiscal 2026 and Fiscal 2027

ERS Retirement Rates for Fiscal 2026 and Fiscal 2027

The employee and state contribution rates for the following plans will not change for fiscal 2026 or 2027:

  • Employees Retirement System of Texas (ERS)
  • Law Enforcement and Custodial Officer Supplemental (LECOS) Retirement Fund
  • Judicial Retirement System Plan 1 (JRS1)
    – and –
  • Judicial Retirement System Plan 2 (JRS2)

The table below outlines the rates effective Sept. 1, 2025, through Aug. 31, 2027.

Retirement Plan Employee Contribution Rate State Contribution Rate1
Fiscal 2026 Fiscal 2027 Fiscal 2026 Fiscal 2027
ERS Groups 1-32 9.5% 9.5% 9.5% 9.5%
LECOS Groups 1-32 0.5% 0.5% 1.75% 1.75%
ERS Group 43 6.0% 6.0% 9.5% 9.5%
LECOS Group 43 2.0% 2.0% 1.75% 1.75%
Judicial Retirement Plan 1 9.5% 9.5% 0.0% 0.0%
Judicial Retirement Plan 24 9.5% 9.5% 19.25% 19.25%
Judicial Retirement Plan 2 Group 45 6.0% 6.0% 19.25% 19.25%
  • 1This rate is pursuant to Senate Bill 1, Article I, Employees Retirement System Riders 4, 5 and 6.
  • 2These rates are applicable to employees, including members of the Legislature, who were members of ERS before Sept. 1, 2022.
  • 3These rates are for the cash balance retirement program created by Senate Bill 321, 87th Legislature, for employees, including members of the Legislature, hired on or after Sept. 1, 2022.
  • 4These rates are applicable to judges and justices who were members of JRS Plan 2 before Sept. 1, 2024.
  • 5These rates are for the cash balance retirement program created by Senate Bill 1245, 88th Legislature, for judges and justices who take office on or after Sept. 1, 2024.

The payroll retirement contribution will continue to be paid by agencies at the rate of 0.5 percent of base salary for all employees who are members of the retirement system. It will be paid from the agencies’ budgets.

TRS Retirement Rates for Fiscal 2026 and Fiscal 2027

For employees covered by Teacher Retirement System of Texas (TRS), both the employee and the state contribution rate will remain 8.25 percent for fiscal 2026 and 2027.

Optional Retirement Program (ORP) Rates for Fiscal 2026 and Fiscal 2027

For employees participating in the Optional Retirement Program (ORP), the state contribution rate will remain at 6.6 percent for both fiscal 2026 and fiscal 2027. Employers are authorized to use local funds or other sources of funds to supplement the General Revenue Fund appropriation at a rate up to 1.9 percent. The employee contribution rate will remain at 6.65 percent for both fiscal 2026 and fiscal 2027.